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									Cafeteria Plan

Another tax-favored plan option is the Section 125 or “Cafeteria” Plan. These plans allow for

conversion of many after-tax expenses (such as group health, life and disability insurance premiums,

unreimbursed medical expenses and dependent care) to pre-tax benefits. Savings to the company and

to employee participants can be dramatic. The employer saves FICA and Workers' Compensation

Insurance premiums. Employees save on federal and state income taxes as well as their share of


Cafeteria Plans & HRA's
Cafeteria Plans and HRA's are two very benefit plans allowed by the IRS Tax Code than can help
employers to provide benefits to their employee's while saving money on taxes.

    •   Learn about Section 125 cafeteria plans
    •   Learn about Section 105 HRA plans

Section 125 Cafeteria Plans
A section 125 cafeteria plan from WC Administrators allows you to offer your employees an
assortment of benefit options.

What is a cafeteria plan?
A cafeteria plan is a benefits plan that lets employees choose from a variety of benefit options.
Contributions to the plan are made with pre-tax dollars and can cover anything from insurance
premiums, to medical expenses or dependent day care reimbursement, to vacation time.

    •   Premium Only Plans
        POP plans allow employees to pay for insurance with pre-tax dollars.
    •   Flexible Spending Accounts
        FSA plans allow employees to be reimbursed for qualified non-covered health and dependent
        day care expenses with tax-free dollars.

You design it
We help you design a benefits plan that's right for your company. You choose benefits and plan limits.
You even tell us how you want the plan to be run.

We do the rest
A representative will personally handle the management of your cafeteria plan. We assist your
employees in the enrollment process. Then, we give prompt, personal, and detailed attention to
processing contributions and claims.
Plan documents
Just need a plan document, not an administrator? We can help with that, too.

Section 105 HRA Plans
A section 105 HRA plan allows business owners and their employees to save on medical insurance
premium costs and other health related expenses.

What is an HRA plan?
An HRA, or Health Reimbursement Arrangement, is a plan that allows employers to set aside a
predetermined amount of money for employees to use to pay for medical expenses. The plan is paid
for solely by the employer (meaning employees do not make contributions as in a Section 125 plan).
All employer contributions are tax deductible for the employer and tax-free to the employee.

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